CZI says business confidence at -36,6 percent


CZI President Busisa Moyo

THE country’s business confidence as measured by the Confederation of Zimbabwe Industry’s quarterly business confidence index shows that most enterprises sentiments of the economy are negative this year although expectations show a general sense of improvement in second quarter of 2016.

At the official launch of the quarterly index, CZI President Busisa Moyo said quarter on quarter the overall BCI shows a negative variance of 33,9 percent while year on year was at a negative 31 percent.

According to Moyo, the quarterly CZI survey aims to ascertain the view of manufacturing companies regarding their situations. He said data was collected from at least 288 companies for the period April to June 2015.

“Quarter on quarter comparable the BCI has a negative score of 36,6 percent while year on year again it’s a negative 53 percent and the business sense is that things are getting worse,” he said.

He said expectation by enterprises point to a lower negative variance of 31 percent year on year for the next quarter but with a general sense that things will be better in Q2 2016.

Moyo said there is less confidence in the economy at the country level for all the indicators of the BCI. The index shows that by region Bulawayo is the most affected in terms of confidence registering a negative 49,5 percent quarter on quarter while year on year was at 71,4 percent.

Harare is at -31,8 percent quarter on quarter and -46,1 percent year on year while Manicaland is -44,3 percent quarter on quarter and -63,7 percent year on year.

CZI business confidence index assess business executives on five variables, namely the economic situation of the establishment, economic situation of the sector in which the particular business operates, country’s economic situation, their sentiment on investment and their sentiment on their firms’ profitability.

The BCI also includes a Purchasing Manager’s Index (PMI).

Rating-wise, the PMI has a score-line of 0 to 100. A score of 50 reflects no change in sentiment, and over 50 indicates an improvement in business activity.

Below 50 indicates a decline, and the number 42 is the indicator of a downturn in the economy.

Zim scored a result of 43,1 in the PMI showing that the country is sitting slightly above the recession point and if things get worse could slid into recession. -FinX